Mining Companies Have Filed 500 Amparos Against Mining Law

The Mining Law reform, which came into effect on May 9, 2023, has stirred uncertainty within the mining sector. A notable point of contention raised by companies is the reduction of concessions. Industry insiders and opposition leaders alike have deemed the reform unconstitutional, prompting the initiation of legal challenges against it.

In response to what the sector and opposition leaders consider an unconstitutional reform of the Mining Law, opposition deputies have filed a legal challenge against the reform before the Supreme Court (SCJN). On the private sector front, both national and foreign companies have submitted over 500 amparos.

According to AIMMGM, these 500 amparos do not represent the actual number of companies presenting them, as some companies filed several lawsuits to address different and specific elements the reform is impacting in their operations. 

Some of the companies that have filed legal challenges have already secured permanent suspensions, including Minera Cobre del Mayo, the owner of the Piedras Verdes vein in Sonora, and Canada-based First Majestic, obtaining definitive suspensions in June and July, respectively. As a result, the Mining Law, which stipulates the automatic rejection of new concessions, cannot be applied to these consortia until the core issues of the legal protections are resolved.

Mining companies consider that the reform violates Art. 1, 5, 14, 16, 27 and 89 section I, and 133 of the Constitution. Furthermore, companies say that the modifications to the National Water Law, the Environmental Equilibrium Law and the Law for Comprehensive Waste Prevention and Management hinder the participation of the private sector in mining. 

Another legal action taken outside the framework of the Mining Law reform is the amparo promoted by the China-based Ganfeng Lithium, the world's largest lithium producer. In August 2023, the Ministry of Economy (SE) announced the cancellation of nine lithium concessions for Ganfeng Lithium, arguing that the company did not meet the minimum investment requirements necessary to maintain the concessions. In response to the cancellation, the company filed an amparo. 

Both opposition leaders and industry insiders believe that the Mining Law reform has weak foundations since it did not respect the legislative process when approved. While fighting the law in courts is the most widespread measure, industry insiders identify other alternatives. “At CANCHAM, we see two potential outcomes for these unfortunate legislative changes. First, they are being fought through legal challenges, specifically via a claim of unconstitutionality in the courts. Alternatively, a new government with a vision of the significant economic contribution of the mining sector could bring about change,” Armando Ortega, President, CANCHAM’s Mining Task Force, said in an interview with MBN.

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